During the second quarter of 2022, the Company accelerated its planned transition to a platform company (the “2022 Strategic Realignment Plan”). The plan was designed to reorient the Company around a single platform allowing it to pursue a portfolio-based marketing strategy that drives traffic to the edX marketplace. As part of the plan, the Company simplified its executive structure, reduced employee headcount, rationalized its real estate footprint and implemented steps to optimize marketing spend. During the third quarter of 2022, the Company completed the planned headcount reductions and consolidated its in-person operations to its offices in Lanham, Maryland and Cape Town, South Africa. In furtherance of the 2022 Strategic Realignment Plan, the Company reduced employee headcount during the third quarter of 2023.

The Company anticipates that it will incur aggregate restructuring charges associated with the 2022 Strategic Realignment Plan of approximately $70 million to $75 million. The Company recorded $13.8 million and $11.3 million in restructuring charges related to the 2022 Strategic Realignment Plan for the three months ended September 30, 2023 and 2022, respectively. The Company recorded $21.5 million and $27.0 million in restructuring charges related to the 2022 Strategic Realignment Plan for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, the aggregate restructuring charges associated with the plan were $52.2 million. The majority of the estimated remaining restructuring charges relate to leased facilities and will be recognized as expense over the remaining lease terms, ranging from 1 to 9 years.


	Three Months Ended September 30, 2023				Three Months Ended September 30, 2022
	Degree Program Segment		Alternative Credential Segment		Degree Program Segment		Alternative Credential Segment

2022 Strategic Realignment Plan
Severance and severance-related costs	$	9,956	$	110	$	—	$	—
Lease and lease-related charges	2,815		629		8,972		298
Professional and other fees relating to restructuring activities	230		—		961		20
Other	14		—		—		1,008
	13,015		739		9,933		1,326

Other restructuring charges*	$	385	$	(54)	$	362	$	11
Total restructuring charges	$	13,400	$	685	$	10,295	$	1,337


	Nine Months Ended September 30, 2023				Nine Months Ended September 30, 2022
	Degree Program Segment		Alternative Credential Segment		Degree Program Segment		Alternative Credential Segment

2022 Strategic Realignment Plan
Severance and severance-related costs	$	11,187	$	114	$	8,772	$	6,431
Lease and lease-related charges	7,087		2,066		8,972		298
Professional and other fees relating to restructuring activities	974		—		1,515		20
Other	40		—		—		1,008
	19,288		2,180		19,259		7,757

Other restructuring charges*	$	1,138	$	(24)	$	1,977	$	179
Total restructuring charges	$	20,426	$	2,156	$	21,236	$	7,936

The following table presents the additions and adjustments to the accrued restructuring liability on the Company’s condensed consolidated balance sheets for the periods indicated.


		Balance as of December 31, 2022		Additional Costs		Cash Payments		Balance as of September 30, 2023

	(in thousands)
2022 Strategic Realignment Plan
Severance and severance-related costs		$	5,225	$	11,237	$	(5,972)	$	10,490
Professional and other fees relating to restructuring activities		923		1,060		(1,391)		592
Lease and lease-related charges		83		9,773		(9,829)		27

Other severance and severance-related costs		461		512		(631)		342
Total restructuring		$	6,692	$	22,582	$	(17,823)	$	11,451